How can I build my own tax software??

[VetTechJess]

I've tried looking it up on google keyword build tax software etc. but nothing can seem to come of it. Surely there is a way, because if you look out there there's tons of tax software out there (such as turbotax and H&R block's tax cut software just to name a few)

I see no real instructions on how to build your own tax software.

Any ideas on what to do and how to do it? I know this is possible, so please don't tell me its impossible to accomplish....

[Keith]

Much the same as you write any other application software: you learn a programming language, then you write the program. You probably won't find a resource specifically on writing tax software because it's a fairly generic example of application development but there are lots of resources on applications programming.

For tax software, there are also audit and accuracy requirements so you would need the input of a certified tax professional to make sure that all your "i"'s are dotted and your "t"s crossed.

[VetTechJess]

Originally Posted by Keith

For tax software, there are also audit and accuracy requirements so you would need the input of a certified tax professional to make sure that all your "i"'s are dotted and your "t"s crossed.

I have an Uncle who is a retired Tax Attorney who worked for the IRS.....can that count?!

[Lucas]

Just curious why you would want to?

[aussieNickuss]

Like Lucas said......why?!

There are so many pieces of accounting and tax software out, there's really no need to build your own, unless you want to get into programming.

[tobyhede]

Having worked ~extensively~ on integration projects with MYOB Accounting (the Australian version of Quicken) and developed a universal Tax-Handling system for ecommerce (capable of handling the tax systems of Australia, Canada, China, the UAE, UK, EU and US) I can vouch that it is the absolute totally most least fun software to develop ever.

I am serious. OMG.

[tobyhede]

But yes.

If you're serious:
Learn Programming
Implement the Tax Rules

That's all there is to it.

[Doku]

My take:

Don't.

Tax laws change every single day.
Quicken, TurboTax, etc. are very cheap, and absolutely everywhere. The market is pretty much saturated already.

Having a relative do it who is a retired tax attorney? Does he still follow the changes in tax law? If he retired two years ago, he can help you with the really flagrant screw-ups, but not with the minutiae.

[Brutha]

Quicken, TurboTax, etc. are very cheap, and absolutely everywhere. The market is pretty much saturated already.

To reach the feature amount that a software like Quicken or TurboTax gives the user you probaby have to spent a bunch of man-years developing the software.

In addition you probably also have a lot of liabilty when you mess up something in a tax program.

[Doku]

Originally Posted by Brutha

In addition you probably also have a lot of liabilty when you mess up something in a tax program.

Ding ding ding! You're a software developer, aren't you?

[1000feet]

It doesn't have to be that complicated. Tax software could be as simple as adding up your income, doing the subtractions and divisions, and printing out the forms with the right numbers superimposed. All you would have to do is create a way to enter the input and a way to print out the pages in the exact format required with the numbers in the right places. If you only support the forms you need for your income and deductions it might not be too complicated - trying to make something for everyone would mean supporting many more forms. And of course you would want to spend a lot of time making sure all the calculations are right.

So, in conclusion, if you have 5+ years of programming experience you could probably make something that automates your current taxes partially in 2-3 weeks. Without real knowledge of the tax system it would be hard to make it do you taxes "better". It would also take a lot longer than either doing your taxes by hand or earning the money to buy commercial software. It probably wouldn't pay off for 5-10 years, and even then we're assuming that your situation, the rules, and the forms don't change at all.

If you have little or no programming experience you're facing a long journey (if you have enough experience you didn't need me to tell you all that). Ask yourself if this is a goal that inspires you so much that you would be happy devoting yourself to it completely for the next 3 years (just a guess, but you really have to be dedicated to something like this to actually finish it; I could do it but I don't care enough).

[Brutha]

Ding ding ding! You're a software developer, aren't you?

No, I'm a student in Bioinformatics.

[VetTechJess]

the reason is I would want to offer it via a website so that ppl can file their tax returns (both state and federal) for free.

I'm tired of having to pay to get file my taxes even though I do them online myself!

theoretically you should have the right to file both state and federal taxes for free.

I think you should regardless of income...

On a side note: those billionaires who would do their taxes--(like walmart and microsoft) it'd be too time consuming for them to do it themselves--thats why they have an accounting department!

[{aspiring_to_clarity}]

If you made less than $54,000.00 in 2007 you can Free File through the IRS website.

[VetTechJess]

Originally Posted by {aspiring_to_clarity}

If you made less than $54,000.00 in 2007 you can Free File through the IRS website.

Oh I know...and I did just that...but I still had to pay $29.95 for 2 state returns thru the same website where I filed my federal tax return for free! It sucks!

[{aspiring_to_clarity}]

Oh, I see. We don't have state taxes in Texas, so I always forget about that.

[VetTechJess]

Originally Posted by {aspiring_to_clarity}

Oh, I see. We don't have state taxes in Texas, so I always forget about that.

You're so lucky!! I envy you!!

[John P]

Originally Posted by VetTechJess

theoretically you should have the right to file both state and federal taxes for free.

You do have the right to file your taxes for free. Go pick up the tax forms from your local public library, fill them in and mail them. Well, OK, you'd be paying $.40 for the stamp, but it's close to free.

The fee that companies and/or government bodies charge for filing online is for the convenience of not having to fill out your forms yourself. Plus they had significant cost in developing an online filing system. If you were to develop your own tax software, there would be significant cost there as well. Giving it away free would not be a good business model.

[VetTechJess]

Originally Posted by John P

You do have the right to file your taxes for free. Go pick up the tax forms from your local public library, fill them in and mail them. Well, OK, you'd be paying $.40 for the stamp, but it's close to free.

The fee that companies and/or government bodies charge for filing online is for the convenience of not having to fill out your forms yourself. Plus they had significant cost in developing an online filing system. If you were to develop your own tax software, there would be significant cost there as well. Giving it away free would not be a good business model.

Well, I know that, but I was thinking I could help pay for the site by using adsense placed in strategic locations. It'd be a free tax filing system paid for by using google adsense......

[joanmhe]

Jess - I like your idea. I find it annoying that States and Feds process electronic returns much faster than paper, and you have to pay for this.
I'm over the limit for free-filing, and after having Quicken screw up my state taxes (i.e. you can't fix the output if you did not agree with the way they computed things, and you can't go back and fix the input), I switched back to paper and stamps (.41 not .40 btw). I wrote accounting software for many years, so I didn't really need software to fill out forms. A while back before Turbo-tax, my ex (who is OCD engineer) created a spreadsheet that performed all the needed calculations, and we just copied the numbers. It took a few minutes to update the spreadsheet every year. It didn't take that long to create, even including schedule D. He had stock options, so this was pretty handy for figuring out the tax implications.
You could create on-line forms, where people put in the numbers and you just calculated according to the instructions. I'm not a web programmer, so don't know how hard this is. You definitely want your accountant uncle to QA review, esp. the calculations on some of the stranger forms such as for dependent child care expenses. If you didn't even do calculations, and just formatted the return as input, then you would reduce your risk.
Anyway, I don't know the process for federal, but for state, you can go to the state site for tax info. and register as a commercial filer, if you meet their requirements. Then you have to figure out how to hook up your web site to their secure server, and how to get the data being submitted into the electronic format required, with electronic signatures, etc., then submit test files. I just submitted 1099s for my company to the state last week, it's the same site as for tax returns. I can see why they don't want individuals, since there would probably be a lot of issues.

Good luck,
Joan